HP has announced it will return $16-billion to shareholders, primarily through buybacks, and boost cost cuts, trying to rally investors against Xerox for control of the world’s second largest PC maker.
Browsing: John Visentin
In the lumbering takeover battle for HP, Xerox had been wielding plenty of stick, so it was about time for some carrot. What came was more of a crudite, but it might just be the appetiser that HP needs.
HP has again rejected an unsolicited takeover offer from Xerox, saying the potential deal “significantly undervalues” the PC maker.
After HP rebuffed Xerox’s attempted $34-billion takeover attempt, don’t be surprised if the printer company’s next step is to say, “You don’t buy us, we buy you.” But don’t expect any offer to be generous.
HP’s board unanimously rejected Xerox’s unsolicited takeover proposal, saying the $22/share offer is too low and citing concerns about the smaller rival’s prospects in the printing industry.
Xerox is considering a cash-stock offer for the PC giant HP, a deal that could combine two of the biggest American names in office hardware.